The Ontario Securities Commission is alerting investors to additional concerns with respect to Morgan Dragon Development Corp. (MD Development) and its principals, John Cheong and Herman Tse.
This warning follows an OSC alert sent out on January 30, 2012, which warned investors not to purchase securities from MD Development, John Cheong and Herman Tse.
Now, OSC is warning investors against sending money to an entity called G.W. Trust and Transfer Services Limited (G.W. Trust), a company that appears to be associated with MD Development. The commission adds G.W. Trust seems to be running a fraudulent “advance fee scheme” in the form of a “non-resident tax.”
Representatives of G.W. Trust are contacting investors, says OSC, and offering to purchase MD Development shares held by those investors who agree to make an advance fee payment to G.W. Trust.
OSC adds any investors who agree are in danger of being defrauded of the fees they send and never receiving payment for the securities that are purportedly being sold for them.
MD Development, Mr. Cheong, Herman Tse and G.W. Trust aren’t registered in any capacity with the OSC. G.W. Trust has never been registered with the OSC in any capacity and the OSC suspended the registration of MD Development, Mr. Cheong and Mr. Tse on January 27, 2012.
Investors are asked to contact the OSC Contact Centre at 1-877-785-1555 for assistance if approached by these entities.